BILL NUMBER: AB 528	CHAPTERED  09/27/99

	CHAPTER   487
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 27, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	PASSED THE ASSEMBLY   JUNE 3, 1999
	AMENDED IN ASSEMBLY   JUNE 2, 1999
	AMENDED IN ASSEMBLY   APRIL 28, 1999
	AMENDED IN ASSEMBLY   APRIL 12, 1999

INTRODUCED BY   Assembly Member Papan

                        FEBRUARY 18, 1999

   An act relating to revenue bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 528, Papan.  Revenue bonds:  joint powers authorities.
   Under existing law, any agency, commission, or board provided by a
joint exercise of powers agreement may issue revenue bonds to pay
the cost and expenses of acquiring or constructing a project as
defined, or conducting a program for any of various enumerated
purposes.
   This bill would specify that the issuance of specified joint
powers authority revenue bonds of designated joint powers authorities
for designated transportation and water facilities and the use of
bond proceeds to finance these projects are valid.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature hereby finds and declares the
following:
   (a) The California Transit Finance Corporation and the WateReuse
Association of California, based on statewide surveys, determined
that there were capital project needs of their members that could
reasonably be expected to require borrowing to finance.
   (b) Bond counsel and disclosure counsel, after a detailed review,
concluded that the creation of bond pools by several transit agencies
and several water agencies was authorized pursuant to Article 2
(commencing with Section 6540) of Chapter 5 of Division 7 of Title 1
of the Government Code.
   (c) Based on these needs and the legal review, the California
Transit Finance Authority and the WateReuse Association of California
were established, in good faith, as joint powers agencies by several
transit agencies and several water agencies, respectively, and each
joint powers agency issued revenue bonds.
   (d) Subsequently, the California Attorney General, in Attorney
General Opinion No. 98-807, without specific reference to the transit
authority and water use authority bonds, concluded that certain
procedures followed in connection with the authorization to issue the
revenue bonds do not comply with the provisions of Article 2
(commencing with Section 6540) of Chapter 5 of Division 7 of Title 1
of the Government Code.
   (e) In enacting this act, the Legislature intends to confirm the
validation of the issuance of those bonds and thereby remove any
cloud upon their validity or the use of proceeds of the bonds to
finance members' projects.
  SEC. 2.  The issuance of joint powers authority revenue bonds by
the California Transit Finance Authority and the WateReuse Finance
Authority of California each in the amount of two hundred million
dollars ($200,000,000) and dated December 15, 1997, and June 27,
1998, respectively, to finance transportation facilities for members
of the California Transit Association and to finance water,
wastewater, and water recycling, storage, and distribution facilities
for members of the WateReuse Association of California and the use
of the proceeds of those revenue bonds to finance those projects
through lease or installment sale of the projects or the purchase of
bonds or loans of those members, all acts and proceedings taken by or
on behalf of those joint powers authorities in connection with the
authorization, issuance, sale, execution, delivery, or exchange of
those bonds, are hereby authorized, confirmed, validated, and
declared legally effective under the laws of the State of California
without limitation.  All persons or governmental entities are barred
from challenging the issuance of those bonds or the use of bond
proceeds based on the manner in which the pools were formed.
   It is the intent of the Legislature not to validate any other
bonds of this type and that this act shall not be construed as having
any effect on Attorney General Opinion No. 98-807.
